Islam and development: exploring the invisible aid economy

The study of Islam since the advent of 9/11 has made a significant resurgence. However, much of the work produced since then has tended to focus on the movements that not only provide aid to their fellow Muslims, but also have political and at times violent agendas. This tendency has led to a dearth of research on the wider Muslim aid and development scene. Focusing on the role and impact of Islam and Islamic FBOs, an arena that has come to be regarded by some as the 'invisible aid economy', Islam and Development considers Islamic theology and its application to development and how Islamic teaching is actualized in case studies of Muslim FBOs. It brings together contributions from the disciplines of theology, sociology, politics and economics, aiming both to raise awareness and to function as a corrective step within the development studies literature.

Introduction: The invisible aid sector

The study of Islam since the advent of 9/11 has made a significant resurgence. However, much of the work produced since then has tended to focus on the movements that not only provide aid to their fellow Muslims, but also have political and at times violent agendas. This tendency has led to a dearth of research on the wider Muslim aid and development scene.

Focusing on the role and impact of Islam and Islamic FBOs, an arena that has come to be regarded by some as the ‘invisible aid economy’, Islam and Development considers Islamic theology and its application to development and how Islamic teaching is actualized in case studies of Muslim FBOs. It brings together contributions from the disciplines of theology, sociology, politics and economics, aiming both to raise awareness and to function as a corrective step within the development studies literature.

Conclusion: Invisible aid: Islam, Muslim NGOs and development

This concluding chapter brings together the key themes and emphasises the key points raised by the contributing authors.

‘Knowledge aid’ as instrument of regulation: World Bank’s non-lending higher education support for Ethiopia

In the context of low-income countries, the role of donors in public policymaking is of great importance. Donors use a combination of lending and non-lending instruments as pathways of influence to shape policy directions in aid-recipient countries. This paper reports some findings from a doctoral study on the role of the World Bank in the recent higher education (HE) policy reform process in Ethiopia. It focuses on the nature and impact of non-lending assistance by the Bank to the Ethiopian HE subsystem. Based on an interpretive policy analysis of sector reviews and advisory activities of the Bank, and selected national HE policy documents, the following findings are highlighted. First, as a ‘knowledge institution’, the World Bank produces, systematises and disseminates knowledge through policy advice, policy reports, analytical sector reviews, and thematic conferences and workshops. Second, knowledge aid from the Bank not only has a profound discursive effect on shaping Ethiopian HE policy reform priorities in accordance with its neoliberal educational agenda but also undermines the knowledge production capacity of the nation. The paper also argues that, for an effective education policy support, the Bank needs to shift its modality of engagement from knowledge aid to research capacity building. 

Foreign aid, leisure-effort choice, and economic growth

Using an endogenous growth model, this paper examines the growth and welfare effects of foreign aid in the recipient economy. The emphasis is on the incentive factor of the effort-leisure choice. Besides financing public services, part of the aid is transferred to the public. This increases individual wealth, thereby providing less incentives to individuals for human capital acquisition, but with more leisure. Thus, foreign aid may not always help the growth and welfare of the economy. Taking this incentive factor into account, we further study the issue on aid allocation in achieving the highest levels of growth and welfare. Along the balanced growth path, aid allocation for welfare maximization is different from that under growth maximization.

Aid, institutions and development

 The PhD thesis studied the effect of aid on economic growth and institutions in 32 transition economies. Main results: aid has contributed to economic growth and democratization;,it has zero to negative effect on governance quality; economic growth, democracy and governance have a positive external influence across space; there is some evidence of a negative spatial relationship between aid and democracy and governance

Indigenous students' persistence in higher education in Australia: contextualising models of change from psychology to understand and aid students' practices at a cultural interface

The need to address the substantial inequities that exist between Indigenous and non-Indigenous Australians in higher education is widely recognised. Those factors that affect the performance of Indigenous students in tertiary education have been reasonably well documented across different institutions, disciplines, and programme levels but there has, to date, been less consideration of the processes by which Indigenous students either persist or desist in higher education. This paper aims to present a conceptual understanding of academic persistence that can inform the delivery of tailored academic support interventions to Indigenous students who are at high risk of leaving higher education.

Development aid and growth in transition countries

Empirical studies normally analyze diverse and heterogeneous groups of countries, producing very mixed evidence on the effectiveness of development aid in promoting growth. We focus on whether aid promotes economic growth in transitional economies. We find that aid, on average, has had a positive impact on growth for this specific group of countries. This result is robust to samples, estimators, and the use of alternate instruments to address endogeneity. Aid effectiveness is not conditional on good policy and there is little evidence of non-linear growth effects arising from aid.

Aid and institutions in transition economies

We investigate whether aid contributed to institutional development in transition economies. We find that aid flows have a positive effect on democratization, especially on constraints on the executive and political participation. At the same time, total aid has no effect on overall quality of governance, while US aid appears to have a negative impact on some dimensions of governance. Aid's differential impact on democracy and governance is consistent with uneven development of institutions and the democracy consolidation hypothesis. We also find that aid has a non-linear effect on democracy. Openness has a positive effect on both democracy and good governance. Oil resources have an adverse effect on democracy. Adult mortality, civil war and adherence to Islam are all detrimental to good governance.